Understanding the New Bankruptcy Laws

With gas prices soaring, food prices on the rise, electric bills increasing, its no wonder many people are searching their coach cushions for spare change to pay for a gallon of milk. And even to pay for a gallon of milk, they will have to find a gold mine in the between the cushions. With these difficult times, comes the news of an increase in bankruptcy filings. While some may frown upon those who file for bankruptcy, others are more sympathetic as they know they might one day be faced with that same decision.

For those staring bankruptcy in the face, it is important to understand the new bankruptcy laws that exist today and the somewhat negative environment that comes along with it.

Bankruptcy Laws are Stricter

Bankruptcy laws were originally designed for those individuals who were down on their luck, so to speak. People who may not be able to pay their bills due to the death of a spouse, loss of a job, or had a serious illness or disability that prevented them from being employed. However, times have changed, and now there seems to be a lot more opportunists out there who have taken advantage of the bankruptcy system thus spearheading a change in the bankruptcy laws.

These opportunists were individuals, who would apply for numerous credit cards, max them out and then file for bankruptcy. The availability of some fly by night legal firms offering low rates for filing bankruptcy only made this more attractive for these individuals. These actions eventually led to the raising of interest rates, which caused numerous hardships for businesses and individuals. Therefore to make sure this abuse of the bankruptcy system ceased, legislators were forced to act. The bankruptcy laws were changed making it more difficult to file and providing a less cushy resolution.

Seek the Help of an Attorney

With stricter bankruptcy laws and more difficult requirements, individuals wanting bankruptcy debt relief should consider seeking the advice of a professional counselor who has the legal expertise and experience to guide them through the process. The failure to seek such counseling could result in a very negative outcome for someone filing bankruptcy.

Individuals seeking bankruptcy relief should not attempt going through the process blindly. They should find out as much information as possible about the new bankruptcy laws and find a good bankruptcy attorney to help maneuver them through the process for the best possible outcome.

About the Author

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